Federal government-backed capital investor the Australian Business Growth Fund (ABGF) has tipped $11 million into Sydney enterprise software company, Capsifi.
Founded in 2013, Capsifi is a business architecture platform for large and complex companies to plan and manage transformation initiatives from concept through to execution.
ABGF provides growth capital to Australian small-medium enterprises (SME), filling the gap between late-stage venture capital and large buyout funds. Announced in 2019 by the Morrison government, kicked off in 2020 with $540 million, including $100 million the government, matched by each of the Big Four banks, with HSBC and Macquarie also contributing $20 million each. The goal is to build the fund to $1 billion.
The fund has already made to previous investments – $15 million in Hunter Valley clean tech startup 3ME Technology and $10 million practice management venture Kikada Lane Dental, with two more companies, a waste management provider and a last-mile logistics firm, earmarked for backing before the end of the financial year.
The independently managed fund plans to invest in around 10 high growth small-to-medium enterprises (SMEs) annually in return for a 10-40% equity stake. To qualify, the must have at least $2 million in revenue and a proven business model. Capsifi is ABGF’s first investment for 2022.
Capsifi’s platform captures key information on a company’s business operating model, including strategies, capabilities, processes, and applications, to enable intelligent insights from the interplay between those layers. It gives organisations the visibility and real-time insights they need to navigate change and improve organisational decision-making.
Service NSW was Capsifi’s first customer and the business was supported by the NSW government. It now has a global blue-chip client base spanning Europe and North America, including Amex, AMP, Costco and Ikea. On the back of strong market momentum
Founder and CEO, Dr Terry Roach launched Capsifi in 2013. He said ABGF’s investment will support continued international expansion and accelerate planned product development and innovation.
“We’re extremely passionate about our business. From our combined experience, we knew there was a universal problem – consolidating disconnected and disjointed business knowledge. Capsifi was designed to deliver real-time intelligent insights into the inner workings of an organisation,” he said.
“After considering several investment opportunities, we decided ABGF was the right fit for us. The appeal came from their unique philosophy on nurturing and building businesses, rather than taking them over.
“We have been very impressed by the careful and mutual consideration we have experienced from ABGF, with a clear focus on making sure the growth potential of the business is realised.”
ABGF has a profit-for-purpose investment model designed to fuel the local SME sector, connecting them to capital, expertise and wider local and international networks.
ABGF Co-Head of Investment Ghazaleh Lyari said the fund provides minority-only, patient growth capital that allows owners and founders to retain control of what they’ve built, while being an active investor.
Capsifi is an Australian research and development success story. With digital transformation fuelling the largest wave of technical investment of our time, we are excited to invest in an innovative technology business that has experienced significant market traction.”
